The Malta Retirement Programme

  • By:Melissa Speigner
  • 0 Comment

Malta, a European country located in the heart of the Mediterranean, enjoys 300 days a year of sunny weather, crystal clear sea waters and warm climate throughout the year. English is one of the two official languages, it has excellent healthcare and low crime rate, making Malta one of the most attractive destinations for retirement in Europe.

Legal Notice 317 of 2012 introduced Malta Retirement Program Rules, which offer pensioners of all nationalities to take up residence in Malta under very attractive tax conditions.


  • Ability to settle in Malta and travel freely within Schengen community
  • 15% flat income tax rate for foreign income remitted to Malta, while any income arising in Malta is subject to tax at 35%
  • Remittance basis of taxation
  • Wide network of double tax treaties and possibility to claim double tax relief


Pensioners of any nationality and their dependents (spouse or partner and minor financially dependent children) who are in receipt of regular pension income.

An individual will not be deemed to be receiving a pension if he is in receipt of a lump sum payment or any capital sum received by way of commutation of pension, retiring or death gratuity.

Conditions for obtaining a Malta Retirement Programme Status

Good Character

Applicants must produce documentary evidence of good conduct by presenting police conduct certificates or equivalent. Applicants are also required to pass a Fit and Proper Test which includes International Due Diligence searches.

Health Insurance

Applicants must be in possession of sickness insurance in respect of all risks across the whole of the European Union normally covered for Maltese nationals for themselves and their dependents.

Property in Malta

An applicant for residency must own property in Malta which is purchased for not less than €270,000 or own property in Gozo which is purchased for not less than €250,000.

Alternatively, the applicant may opt to rent a property of which the minimum rental for Malta is €9,600 per annum and for Gozo it is €8,750 per annum.

Financial Requirements

Applicants must receive the whole amount of their pension in Malta, which pension constitutes at least 75% of the beneficiary’s chargeable income.

Other conditions

Applicants must not be nationals of Malta. They must not be domiciled in Malta and do not intend to establish their domicile in Malta within 5 years from application date. They should not benefit under any other Malta Special Tax Status or be in employment, however they may occupy non-executive posts (directors and chairpersons).

Remittance Only Basis of Tax

Non-domiciled foreigners who are beneficiaries of a Malta Retirement Programme are taxable on a ‘remittance basis’: only income and capital gains arising in Malta and foreign income remitted to Malta are taxable in Malta. Foreign source capital gains whether remitted to Malta or not are not subject to tax in Malta.

Annual Obligations

  • Annual minimum tax €7,500;
  • An additional minimum tax of €500 per dependent;
  • Retention of health insurance and qualifying property;
  • Submission of tax return;
  • Spend in Malta at least 90 days a year;
  • Refrain from staying in any other jurisdiction for more than 183 days.

Application Process

There is no need for personal presence of the applicant in order to submit application under the Malta Retirement Program, with a minimum set of documents an authorised registered mandatory can lodge the application to the Commissioner for Revenue.

The processing time takes around 3 months. At the final stages the applicants will be asked to visit Malta to finalize program’s formalities. Once the special tax status is confirmed under the program, the applicants may proceed to apply for residence document in Malta.

Our Services

Corrieri Cilia is authorised registered mandatory enabled to represent applicants under the Malta Retirement Programme and other programmes leading to special tax status.

We will be glad to assist with processing the application for Malta Retirement Programme; handle annual compliance formalities under the program as well as offer assistance with buying or renting qualifying property and applying for health insurance sufficient for the program purposes.


Posted in: Private Clients